142.Joseph, Inc., provides the following results of June's operations:
Direct materials price variance$400F
Direct materials quantity variance2,000U
Direct labor rate variance100U
Direct labor efficiency variance1,200F
Variable overhead spending variance400U
Variable overhead efficiency variance800F
Fixed overhead spending variance100U
Fixed overhead volume variance600F
Required:
(a) Determine the total overhead cost variance for June.
(b) Applying the management by exception approach, which of the variances shown are of greatest concern? Why?
143.Oxford Co. produces and sells two lines of t-shirts, Classic and Mod. Oxford provides the following data. Compute the sales price and the sales volume variances for each product.
BudgetActual
Unit sales price—Classic$15$16
Unit sales price—Mod$20$19
Unit sales—Classic2,4002,500
Unit sales—Mod2,0001,900
144.A company's flexible budget for 60,000 units of production showed sales of $96,000, variable costs of $36,000, and fixed costs of $26,000. What operating income would be expected if the company produces and sells 70,000 units?
145.A company's flexible budget for 30,000 units of production showed sales of $90,000, variable costs of $36,000, and fixed costs of $23,000. Prepare a flexible budget for 25,000 units assuming it is within the same relevant range of production.
146.Based on predicted production of 25,000 units, FreshCo. anticipates $175,000 of fixed costs and $137,500 of variable costs. What are the flexible budget amounts of total costs for 20,000 and 30,000 units?